- A software as a service or SaaS model
means that a third-party provider hosts the application
software on behalf of the end-user.
You can think I think of SaaS more like applications
that are delivered through web browsers,
or websites that provide the same value
as traditional applications,
such as ERP or enterprise resource planning,
or CRM, customer relationship management,
even productivity applications.
Using a SaaS cloud removes the need for enterprises
to spend a large amount of cash on enterprise software,
and the SaaS cloud provider
maintains the hardware and software.
Also, there is almost unlimited scalability
for growing enterprises since you can add seats
or subscriptions as you add employees to the team.
Additionally, there is no need to update or patch
the software updates are continuous and automatic.
SaaS supports both desktop and mobile computing
and the applications are thus pervasive
such as an on demand accounting system.
There are more than 2000 SaaS cloud providers
in the market today.
Prime examples include Salesforce.com,
a customer relationship management solution
that's popular within enterprises focusing
on customer services and sales and management.
Google apps providing storage, word processing,
spreadsheets, and maybe shared among many users.
And Microsoft 365 which is a SaaS version
of the popular Microsoft Office platform.
So what's the business case for SaaS?
First, you can avoid buying hardware and software
in support of an on-premise business application.
Just as with the value of parse in IS,
the idea is to shift the risk to the SaaS cloud provider.
The ability to pay for only the subscription
typically per person that you use,
allows you to align your usage directly with spending.
Finally, SaaS supports pervasive application delivery
including desktop and mobile devices.
This means that no matter if you're on your computer,
phone or tablet, you're able to leverage
the same application and the same data.
This allow SaaS to reach most users on the devices
that they prefer to use.
Software as a service is a revolution
in the way in which we consume software.
Moving forward, you'll find that this model
is going to be the desired model
that your enterprise is going to use.